A Level Accounting

Key information

This course will help you gain a good understanding of the processes and practices a business must undertake to safeguard its finances, the financial decisions it must take and the preparation of its financial statements to satisfy stakeholders. Financial management and planning are the backbone to commercial success and a sound understanding of accounting is important to anyone aspiring to a career in business.

You will be introduced to and practice double-entry book-keeping along with the production of financial statements (statement of financial position). These two topic areas are the fundamental building blocks of A-Level Accounting and most of the work done throughout the first year and to a certain extent in the second year will rely on your understanding of these aspects.

Accounts is about structure and the understanding of why a figure is put in a certain place rather than just having mathematical abilities. Therefore, students are expected learn how to neatly produce financial statements when calculating the profit made by a business (the income statement) and accurately valuing a business (statement of financial position). Being numerate and having good powers of analysis are required as learners are expected to produce and interpret their calculations. Students must be able to evaluate the performance of a business. Consequently, learners will need to have good written abilities to structure essays that will test their ability to balance an argument, draw conclusions and make recommendations.

1. An Introduction to the role of the accountant in business
Understanding the differences between management and financial accounting along with the integrity to provide reliable and relevant information.

2. Types of business organisation
Understanding of the different legal structures of business including sole traders, partnerships, private limited companies and public limited companies

3. The double entry model
How financial transactions are recorded. From the issue of invoices, credit notes, cash receipts, etc. to the recording in the general and sub ledgers.

4. Verification of accounting records
The reconciliation of the accounts through the production of the trial balance, bank reconciliation, purchase ledger reconciliation and sales ledger reconciliation.

5. Accounting concepts used in the preparation of accounting records
The concepts that are used by accountants to ensure that specific situations are dealt with in an appropriate way. Such as: goods on “sale or return”, asset depreciation, stock valuation, etc.

6. Preparation of financial statements of sole traders
The production of the income statement and balance sheet of self employed individuals either in the trading or service sector of the economy. The financial statements will contain a variety of adjustments such as accruals, prepayments, irrecoverable debts, inventory drawings, depreciation, etc.

7. Limited company accounts
The production of the income statement, statement of changes in equity and balance sheet of limited companies for internal usage.

8. Analysis and evaluation of financial information
A variety of financial measures and ratios will be used to assess a business end of year results. This includes levels of cash, profitability, business efficiency and capital structure calculations.

9. Budgeting
How budgets are used in planning and controlling a business. This also includes the calculation and interpretation of variances.

11. Standard costing and variance analysis
Material, labour and sales variances will be assessed along with the reconciliation of budgets through cost and profit.

12. Absorption and activity based costing
Calculation of product cost and the calculation of selling price using both methods.

Assessment of advantages and disadvantages of both along with marginal costing are required.

13. Capital investment appraisal
Appraisal of investment projects using payback period and net present value methods. Assessment of the benefits of projects through the appraisal of financial and non financial factors are to be undertaken.

14. Accounting for organisations with incomplete records
Calculation of missing figures using control accounts, ratio analysis in order to produce financial statements of a small business. Ability to assess the benefits and limitations single entry and double entry accounting bookkeeping methods are required.

15. Partnership accounts
Production of financial statements including income statement, appropriation account and balance sheet. The adjustment of accounts with the admission or retirement of a partner are required.

16. Accounting for limited companies
The production of financial statements in accordance with IAS 1 accounting standards. This will also include statements of cash flows (IAS 7) and schedules of non-current assets.

17. Interpretation, analysis and communication of accounting information
Development and extension of item 8 (Analysis and evaluation of financial information) with focus on assessment of investor ratios including dividend yield, dividend cover, price earnings ratio, etc.

18. The impact of ethical considerations
Exploration of the fundamental principles of ethical behaviour of accounting professionals including integrity, objectivity, confidentiality, professional behaviour, etc.

Students will be assessed regularly regarding your abilities to produce book-keeping records, financial statements and written responses to given financial situations. This will be through homework and in-class formal assessments.

Review their own performance in 1:1 sessions with their tutor.

Be asked to review their learning from the set topic learning objectives.

Undertake mock examinations on each unit in advance of the final examinations.

The complete syllabus, topic learning objectives and scheme of work etc., will be gone through in class and are available via our Moodle Learning Website along with exercises, glossary terms and other literature used to support learners. Students are also given topic learning objectives, so they understand what is required of them and to help prepare for formal assessments.

Five GCSEs including Mathematics grade 6 AND English Language grade 4.

Awarding Body:
AQA

Further information

To obtain more information about this course, please call: 01872 267000 or 01736 335000 or visit www.truro-penwith.ac.uk